Diamondback Energy and Endeavor receive second FTC request over $26 bln deal
29/04/2024 23:05
April 29 (Reuters) - Oil and gas firm Diamondback Energy
FANG.O said on Monday it had received a second request from
the U.S. Federal Trade Commission (FTC) in connection with the
$26 billion deal to buy privately-held Endeavor.
The U.S. antitrust regulator has asked for additional
information and documentary material as part of its review of
the proposed merger.
CONTEXT
Midland, Texas-based Diamondback had said in February it
would buy privately held rival Endeavor Energy Partners in a
cash-and-stock deal, which is expected to close in the fourth
quarter.
The combined company would be the third-largest oil and gas
producer in the Permian Basin of West Texas and New Mexico,
behind Exxon Mobil XOM.N and Chevron CVX.N .
U.S. lawmakers have sought increased scrutiny of
multi-billion dollar deals in the oil and gas industry from the
FTC.
WHY IT IS IMPORTANT
This is the fifth oil and gas deal since December to get a
second request from the FTC. Other deals to receive second
notices include the Exxon XOM.N - Pioneer PXD.N , Chevron
CVX.N - Hess HES.N and Occidental OXY.N - Crownrock
CROWR.UL .
Earlier this month, Chesapeake Energy CHK.O and
Southwestern Energy SWN.N said the closing date of their
proposed $7.4 billion merger had been pushed back to the second
half of the year after receiving a second request for
information from the FTC.
BY THE NUMBERS
The combined Diamondback-Endeavor company would pump
816,000 barrels of oil and gas per day (boepd), behind the
Exxon-Pioneer combination of about 1.3 million boepd and
Chevron's 867,000 boepd in the basin.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Tasim
Zahid)
((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))